Decentralization of Governance and Development

Posted: 31 Mar 2003

See all articles by Pranab Bardhan

Pranab Bardhan

University of California, Berkeley - Department of Economics


In this paper we note that the institutional context (and therefore the structure of incentives and organization) in developing and transition economies is quite different from those in advanced industrial economies, and this necessitates the literature on decentralization in the context of development to go beyond the traditional fiscal federalism literature. We review some of the existing theoretical work and empirical case studies of decentralization from the point of view of delivery of public services and of conditions for local business development, and point to ways of going forward in research.

JEL Classification: E00, O40, Q32, N10

Suggested Citation

Bardhan, Pranab, Decentralization of Governance and Development. Available at SSRN:

Pranab Bardhan (Contact Author)

University of California, Berkeley - Department of Economics ( email )

549 Evans Hall #3880
Berkeley, CA 94720-3880
United States

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